b) You find an insurance company that will provide full insurance (that is, they will pay all $2,000 of your medical bills if you get sick) for a premium of $50. What is the expected utility from buying insurance? (I) = (0.1* $50) + (0.9 * $3,600) = $3,245 (U) = (0.1* 7) + (03* 60) = 54 c) Will you buy the insurance, and why? es! Since the expected Utility without insurance was 58.5 d) Suppose the insurance company reduces their coverage from full insurance to partial insurance by saying they will only pay half ($1,000) of your medical bills if you get sick. The premium is still $50. Will you still buy the insurance, and why? 0 because you are adding a cost of getting sick then you would be subtracting 3600 1050 = 550 which is way lower than any of them